US oil may test support at $66.96
- A break above $68.35 could confirm the extension of the uptrend towards $69.73-$71.45 range
SINGAPORE: US oil may test a support at $66.96 per barrel, a break below which could cause a fall to $65.24.
The contract failed to break a resistance at $68.35 per barrel.
The failure triggered a pullback towards a falling trendline which establishes a support around $65.24.
A break above $68.35 could confirm the extension of the uptrend towards $69.73-$71.45 range.
On the daily chart, the candlestick on Wednesday looks much smaller than the preceding two.
Such a combination suggests a dissipation of the bullish momentum. Even though oil has broken $67.12, it may pull back towards this former resistance first, instead of rising towards $69.44.
A break below $67.12 may open the way towards $64.79, which is near $65.24 (hourly chart).
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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